Plans to build affordable housing 'long overdue'

The plan to make it mandatory for developers to build affordable housing for low-income tenants in Dubai will not only benefit the residents, but the local economy as well,

The plan to make it mandatory for developers to build affordable housing for low-income tenants in Dubai will not only benefit the residents, but the local economy as well, industry analysts have said.

According to property consultants, the introduction of housing options for families earning below AED15,000 a month will bring a “wide range of benefits” to Dubai and lead to an increase in investor interest.

Middle-income earners account for a huge proportion of the population in Dubai, more than 40%, and they are likely going to be the key driver for the affordable housing market in the emirate, Gulf News reported.

“The introduction of this asset class in Dubai is likely to bring a surge in institutional investor interest, especially if the affordable quotas are reasonably high, say in the region of 20% to 30% of the total number of units being built," said Cluttons in its Spring 2015 Residential Market Outlook.

“The creation of this new residential investment class should then pave the way for partnerships between local developers and large multinational finds, effectively catapulting the emirate's real estate market to the next stage of its evolution.”